Whats the difference between “pre-approval” and “pre-qualification?”?
A pre-approval is, in most cases, the final step to a complete mortgage commitment. The lender commits to financing your home and indicates the total mortgage amount available to you using basic information and electronic credit reporting. In many cases the only remaining condition is the satisfactory appraisal on the property. A prequalification is a discussion between a homebuyer and a loan officer to calculate an estimated mortgage amount for a homebuyer. It is based on basic information regarding the customer’s income, monthly debts, credit history and assets. It is not a full mortgage approval. 2.
